Apecoin (APE) Struggles Amidst Community Proposals
The price of Apecoin (APE) fell to an all-time low of $1.16 on Monday, September 11, after a flurry of new community proposals failed to pique investor enthusiasm.
The Apecoin (APE) market is undergoing significant challenges, with prices plummeting to a new all-time low of $1.16. Despite recent efforts by the APE community to reignite interest through proposals, it seems the bears are firmly in control.
Apecoin Community Proposals and Investor Sentiment
On September 8, the Apecoin team introduced four APE Improvement Proposals (AIP), including an intriguing proposal for a documentary called "BORED AS F*CK." However, on-chain data suggests that these proposals haven't sparked the desired enthusiasm among investors.
The number of new users joining the Apecoin ecosystem has hit historic lows, with Network Growth (5d) plummeting to 258 on September 10, the lowest since APE's inception in March 2022. This metric, which estimates the blockchain network's user acquisition rate, indicates a struggle to attract new demand.
Anticipating Further Price Decline
The outlook remains bearish as Apecoin is set to unlock 40.6 million tokens on September 15. Historical trends indicate that investors tend to intensify selling pressure before token unlock events. This pattern has been observed in previous unlocks in May, July, and August.
Token unlocks, which increase the supply of a cryptocurrency in circulation, can lead to price pressure if not met with a corresponding increase in demand. Given the current low Network Growth, it's likely that the bearish sentiment will escalate ahead of the upcoming unlock.
Investor Sentiment and On-Chain Data
ApeCoin has faced substantial losses, with on-chain data revealing that 99.95% of wallet addresses holding APE tokens are "out of the money." This indicates that the majority of token holders are experiencing losses.
The Market Value to Realized Value ratio further highlights the extent of losses, standing at -71.24%. This implies that selling at the current price would result in a loss for holders.
Demand for ApeCoin is dwindling, with new addresses created for trading APE plummeting by 98% since August 17. Daily active addresses have also seen a sharp decline, dropping to just 1504 compared to 17,000 in mid-August.
Apecoin Price Analysis
As per CoinStats, ApeCoin's price is $1.16, down -8.52% in the last 24 hours, with a live market cap of $426M. It has a circulating supply volume of 1,000,000,000 APE coins and a maximum supply volume of 1,000,000,000, with a 24-hour trading volume of $56M.
Source: CoinStats
On the daily chart, Apecoin is surfing downwards with a declining pattern. The downtrend has been there since 20 June when the ApeCoin DAO secretary, "Vulkan," revealed an organisational chart on Twitter, revealing the DAO's leadership salaries. The revealed monthly compensations ranged from $7,000 to $75,000, which startled the community and spurred questions.
The regression pattern shows some parts where the token tried to overcome the pattern by striking the resistance bar but failed to break so. The plunging motion still persists even after large whale accumulations. The RSI is at the 24 mark which is an extreme oversold zone. The bears are still selling, creating a ripple effect over the price recovery range.
Source: TradingView
Conclusion
In conclusion, the ApeCoin ecosystem is grappling with challenges on multiple fronts, from dwindling investor interest to significant token unlocks. The outcome of community proposals and the market's response to upcoming unlocks will play a crucial role in determining APE's future trajectory.
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